Customers for Life
One of my colleagues said that using a rewards program to get "a customer for life" is just bull! Customers are human, subject to enticements from others, the seduction of promised rewards, and have a short attention span—it’s easy to get bored when you frequent the same stores, restaurants, hotel chains, etc. Variety is the spice of life in most situations. So even if you are happy with your provider, you often find a reason to try someone else.
Customer Retention versus Customer Acquisition
One very annoying aspect of discounts and rewards is penalizing loyal customers in favor of new customers. In her article "Lollipop Loyalty," posted on DestinationCRM.com in January 2008, Jessica Tsai relayed a story told to her by Phil Sugar, CEO of the loyalty and rewards platform Smart Button, that truly epitomizes this phenomenon: